- 2 -
Withholding tax Additions to tax Addition to tax
Year deficiencies sec. 6651(a)(1) sec. 6651(a)(2)
1994 $35,416 $8,854.00 -0-
1995 102,532 25,633.00 -0-
1996 29,900 6,727.50 $7,475
After concessions,2 the issues for decision are:
(1) Whether petitioner, a corporation that paid interest to
Guang Xin Enterprises, Ltd. (GXE), during 1994, 1995, and 1996
(the years in issue), is liable for withholding tax deficiencies
under section 1461 for the years in issue in the amounts
determined by respondent or in some lesser amounts; and
(2) whether petitioner is liable for additions to tax under
section 6651(a)(1) for failing to file Forms 1042, Annual
Withholding Tax Return for U.S. Source Income of Foreign Persons,
or Forms 1042S, Foreign Person’s U.S. Source Income Subject to
Withholding, for the years in issue.
1(...continued)
all Rule references are to the Tax Court Rules of Practice and
Procedure.
2Respondent concedes that petitioner is not liable for the
sec. 6651(a)(2) addition to tax determined in the notice of
deficiency.
Petitioner alleged in its petition that the expiration of
the period of limitations barred the assessment and collection of
tax for the years in issue. However, petitioner did not pursue
this issue at trial or on brief, and we consider it abandoned.
See Leahy v. Commissioner, 87 T.C. 56, 73-74 (1986).
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